Title-winning boss Gerrard withdrew from consideration last weekend, saying the timing was not right for him to return to Ibrox.
Rohl then also pulled out, leading Rangers to hold advanced talks with Australian Muscat – but the potential delayed start to his tenure made the deal unworkable for both parties.
Rohl, who left Sheffield Wednesday by mutual consent in the summer, twice staved off relegation with the embattled South Yorkshire club.
He finished 12th in the Championship in his one full season in charge – an impressive achievement given Wednesday’s financial struggles.
Former Southampton boss Martin was sacked with Rangers eighth in the league, nine points behind champions Celtic and two more adrift of leaders Heart of Midlothian.
They are now eight points behind labouring Celtic and 13 behind Derek McInnes’ side.
Rangers also failed to qualify for the Champions League under Martin and lost both of their Europa League games.
BBC News
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